1. Presented by V. Schmitt & S. Satriana Vientiane, 25 April 2013
The Social Protection Floor framework International standards and practices
Presented by V. Schmitt & S. Satriana
Vientiane, 25 April 2013

2. Structure of the presentation
What is social security?
How to extend social security?
The Social Protection Floor concept and recommendation
Examples from ASEAN countries

3. What is social security?
People face contingencies during their lives
Maternity
Sickness / ill health
Unemployment
Work injury
Life cycle
Families with children
Invalidity
Death of the breadwinner
Old age
These have financial consequences

4. What is social security?
THE PROTECTION PROVIDED BY SOCIETY
To compensate for the loss of income & covers health care expenditures
To facilitate access to social services and fulfill basic needs
FINANCIAL SUPPORT
ACCESS TO SERVICES
SOCIAL TRANSFERS

5. What is social security?
Social security is a human right
The Universal Declaration of Human Rights
The International Covenant on Economic, Social and Cultural Rights
The Declaration of Philadelphia (annex to the Constitution of the International Labour Organization)

6. How to implement the right to social security?
ILO has adopted Social Security Standards
Two types: Conventions and Recommendations
These standards lay down obligations and guidelines for ILO Member States

7. The main Social Security standards for each “contingency”
Maternity
Sickness / ill health
Unemployment
Work injury
Convention No102, covers the nine contingencies
Life cycle
Families with children
Invalidity
Death of the breadwinner
Old age
C 183
C 128
C 128
C 128

8. How to implement the right to social security?
Contributory
Non contributory
Compulsory
Voluntary
Targeted
Non-Targeted
Social Insurance
(Ex: SSO)
Extension of social insurance to informal sector
Micro-Insurance
(Ex: CBHI)
Fully subsidized provisions for civil servants (Ex: CSBMS)
Targeted social assistance (Ex: HEFs)
Universal schemes (Ex: UCS)

9. Structure of the presentation
What is social security?
How to extend social security?
The Social Protection Floor concept and recommendation
Examples from ASEAN countries

10. Social security extension
For a long time, SS was contributory and mainly adapted to the formal sector
Level of protection
Assumption that these schemes would progressively extend their coverage with the shrinking of the informal sector
???
This did not happen….
Poor
Rest of informal sector
Formal sector
Population

11. Social security extension
Discussion on SS in > new consensus: priority to the extension of coverage, exploring several strategies: adapted SI, micro-insurance, social assistance…
Level of protection
Poor
Rest of informal sector
Formal sector
Population

12. Social security extension
Situation today:
SP programs are scattered, sometimes overlapping, inclusion/exclusion errors
Coverage through micro-insurance limited; often not sustainable
Some programs target only the poorest, leaving the rest of informal sector workers uncovered
In a few countries (e.g. Thailand) universal schemes (UCS, old age allowance)
Level of protection ??
Poor
Rest of informal sector
Formal sector
Population

13. Social security extension: the social protection floor
Level of protection
All residents should enjoy at least a minimum level of social security
Member states of the ILO should establish social protection floors as a fundamental element of their social security systems
Nationally defined social protection floor
Poor
Rest of informal sector
Formal sector
Population

14. Social security extension: the social protection floor
Level of protection
Based on this floor, extend social security to provide progressively higher levels of SP benefits to more people
Higher levels of social security to more people
Nationally defined social protection floor
Poor
Rest of informal sector
Formal sector
Population

15. Structure of the presentation
What is social security?
How to extend social security?
The Social Protection Floor concept and recommendation
Examples from ASEAN countries

16. It was adopted in national social protection strategies
Source: NSPS-PV of Cambodia, 2011

17. And endorsed by the 185 member states of the ILO in June 2012 with the adoption of the SPF Recommendation (No 202)
101st ILC
14 June 2012
456 yes votes
1 absention
The recommendation 202 is a useful guidance for member states who wish to establish/maintain SPFs as part of their national social security systems

18. In a country with a Social protection floor, four guarantees:
All residents have access to essential health care 
All children enjoy income security through transfers in cash or kind  access to nutrition, education and care 
All those in active age groups who cannot earn sufficient income enjoy a basic income security (particularly in case of sickness, unemployment, maternity, disability) 
All residents in old age and with disabilities have income security through pensions or transfers in kind

19. Nationally defined Social Protection Floors
Not a one size fits all approach : each country defines the levels of benefits that it can/is willing to provide
Each country also decides how to do it – through universal schemes, targeted social assistance, social insurance, a combination…

20. Give effect to the recommendation
According to ILO’s Constitution ILO member states have to submit the Social Protection Floors Recommendation before the national authorities to enact legislation or take action to give effect to the Recommendation.
In this context the Assessment Based National Dialogue Exercise will be a useful tool since it will propose concrete routes for the further development of the SPF in Lao PDR.

21. Structure of the presentation
What is social security?
How to extend social security?
The Social Protection Floor concept and recommendation
Examples from ASEAN countries

22. Universal access to health care in Thailand
Level of protection
CSMBS
6.7% pop
SSF sect.33 and % pop
Universal Coverage Scheme (UCS) – 75.1% population
CMHI since 2009 (880,000 insured)
Poor
Rest of informal sector
Formal sector
Quasi 100% Coverage
(issues: large number of undocumented migrant workers are not covered by the Compulsory Migrant Health Insurance (CMHI) due to problems of affordability)

23. 15 years free education policy in Thailand (9 years compulsory)
Level of protection
Educa-tion grant (Rbt educ. Fees from 3 to 25 years of age)
Child support grant (400 Baht month)
Free education policy extended to 15 years, compulsory education from 6 to 15 years of age
Poor
Rest of informal sector
Formal sector
Limitations: children of poor families are requested to work; advocacy for a child support grant either universal or targeted to poor households / children of certain age groups

24. Cash transfers & scholarships for poor children in Indonesia
Level of protection
PKH and PKSA million very poor households in 2012
Scholarship for the poor – 6.3 million students in 2012
BOS program – Free education – 44.7 million students in 2012 (grade 1 to 9)
Poor
Rest of informal sector
Formal sector
Limitations: The PKH program should be expanded to cover at least all poor households (instead of only very poor); lack of health and education supply may curb the impact of the program.

25. Income security and return to work for the working age in Indonesia
Level of protection
Community Empowerment
Plan de Empleo Comunitario (community work plan): $150 (US$38.5) per month for unemployed workers
Programa Jóvenes Más y Mejor Trabajo (programme for more and better work for young people): From $150 to 550 (US$38.5 to 141.0) per month plus counseling and training services (school completion, work orientation, vocational training)
Seguro de Capacitación y Empleo (training and employment insurance): $225 (US$57.7) per month plus counseling and training services (school completion,
work orientation, vocational training)
Interzafra: $225 (US$57.7) per month for unemployed workers in temporary positions
Seguro de Desempleo: (unemployment insurance) $357 (US$91.5) on average per month for formal-sector unemployed workers
Recuperación Productiva, REPRO, (programme for productive recovery): $600 (US$153) per month as subsidy for nominal wages for employees of businesses hit by crisis
Training
Training
Training
Micro credit
Micro credit
Poor
Rest of informal sector
Formal sector

26. Income security and return to work for the working age in Argentina
Level of protection
Unem-ployment insurance
REPRO-wage subsidy
Allowance for temporary workers
Plan de Empleo Comunitario (community work plan): $150 (US$38.5) per month for unemployed workers
Programa Jóvenes Más y Mejor Trabajo (programme for more and better work for young people): From $150 to 550 (US$38.5 to 141.0) per month plus counseling and training services (school completion, work orientation, vocational training)
Seguro de Capacitación y Empleo (training and employment insurance): $225 (US$57.7) per month plus counseling and training services (school completion,
work orientation, vocational training)
Interzafra: $225 (US$57.7) per month for unemployed workers in temporary positions
Seguro de Desempleo: (unemployment insurance) $357 (US$91.5) on average per month for formal-sector unemployed workers
Recuperación Productiva, REPRO, (programme for productive recovery): $600 (US$153) per month as subsidy for nominal wages for employees of businesses hit by crisis
Allowance / month & training & counselling
Community workk plan
Poor
Rest of informal sector
Formal sector

27. Extension of social insurance to informal economy workers in Thailand
Level of protection CS
6.7% pop
SSF sect.33 and % pop
Social security Act, Section 40 Package 1: 70 baht / 30 baht Death, Work injury, Sickness
SSF section 40
Universal disability allowance of 500 baht/month
Poor
Rest of informal sector
Formal sector
With the introduction of subsidies, coverage has increased from 68 persons to 1.3 million in 18 months. However the target population = 24 million informal economy workers. Also only 50% pay contributions regularly.

28. Income security for the elderly (>60 years) in Thailand
Level of protection
Pen-sion for CS
Social security Act, Section 40 Package 2: 100 baht / 50 baht Death, Work injury, Sickness & Old age lump sum
SSF section 33 & 39
SSF section 40
Universal old age allowance
Plan de Empleo Comunitario (community work plan): $150 (US$38.5) per month for unemployed workers
Programa Jóvenes Más y Mejor Trabajo (programme for more and better work for young people): From $150 to 550 (US$38.5 to 141.0) per month plus counseling and training services (school completion, work orientation, vocational training)
Seguro de Capacitación y Empleo (training and employment insurance): $225 (US$57.7) per month plus counseling and training services (school completion,
work orientation, vocational training)
Interzafra: $225 (US$57.7) per month for unemployed workers in temporary positions
Seguro de Desempleo: (unemployment insurance) $357 (US$91.5) on average per month for formal-sector unemployed workers
Recuperación Productiva, REPRO, (programme for productive recovery): $600 (US$153) per month as subsidy for nominal wages for employees of businesses hit by crisis
>90: 1000 baht
80-89: 800 baht
60-69: 600 baht
70-79: 700 baht
Poor
Rest of informal sector
Formal sector

29. Income security for the elderly in Viet Nam
Level of protection
Voluntary insurance under government regulation
Social pension (180,000 VND/month)
Problems with the vertical dimension: weak protection to formal workers
5 millions don’t receive any pension
1,300,000 social assistance +80
100,000 social assistance 60-80
1,000,000 pensioners
100,000 voluntary participants

30. An ASEAN priority
Cambodia proposed a Concept note and Plan of Action at ASEAN summit in Nov 2012, Phnom Penh to…
Achieve Integration with a Human Face
Mitigate any negative social effects of the economic integration especially for the Community’s least developed countries and on the poorest segments of ASEAN population
Nationally defined social protection floors
Towards an ASEAN Declaration